AMD's strong AI momentum and faster sales growth for 2025 may give it the edge over QCOM, despite higher valuation.
Advanced Micro Devices client revenue jumps 67.7% on strong Ryzen CPU demand and AI PC momentum, raising growth expectations.
Shares of Advanced Micro Devices ( NASDAQ:AMD ) gained 10.50% over the past month, bringing the stock's year-to-date gain to 5.11%.
I'm maintaining Advanced Micro Devices, Inc. with a Buy rating, as the stock gains momentum and the market recognizes its AI potential beyond being Nvidia's runner-up. AMD's new MI400 and MI355X chips, competitive pricing, and major partnerships position it to capture meaningful AI market share as hyperscalers diversify suppliers. Technical indicators show strong momentum and a clear uptrend. As long as AMD holds above $120-$125, I expect further upside in the near term.
I maintain a Strong Buy on Advanced Micro Devices, Inc., expecting AMD stock to reach $200 within 1-2 years, driven by operational growth and valuation expansion. AMD delivered robust Q1 results with 35.9% YoY revenue growth to $7.44B and a 54.8% EPS jump to $0.96, beating consensus despite lowered Q3 estimates. Despite a $1.5B FY25 sales hit from China export controls, soaring Data Center (57% YoY) and strong Client segment (68% YoY) growth showcase underlying operational strength.
Advanced Micro (AMD) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Advanced Micro Devices, Inc.'s recent share surge reflects growing investor confidence in its ability to challenge Nvidia, driven by strong Data Center momentum and upcoming product launches. I remain bullish on AMD due to its robust AI accelerator pipeline, which could accelerate growth and help close the gap with Nvidia. AMD is launching new products, such as Helios-branded AI server racks, for the hyperscale market. Agentic AI represents a strong growth opportunity for AMD.
Advanced Micro (AMD) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
AMD's chiplet architecture and Xilinx integration uniquely position it to capture AI compute demand from cloud to edge, outpacing monolithic rivals. Financial momentum is strong: Q1 revenue up 36%, margins expanding, and free cash flow doubling, with minimal leverage and a robust balance sheet. Valuation remains attractive versus Nvidia, underpricing AMD's platform optionality and embedded call options on MI355 and edge AI growth.
Major U.S. equities indexes pushed higher following reports that Iran is willing to return to negotiations over its nuclear program as it aims to ease hostilities with Israel.
Axpaxli is Ocular's main value driver, targeting a large wet AMD market with a differentiated, sustained-release TKI mechanism. DEXTENZA sales are declining, making Ocular increasingly dependent on Axpaxli's clinical and commercial success. Upcoming Phase 3 data for Axpaxli is a binary catalyst: strong results could double the stock, while failure risks a 70%+ drop.
Advanced Micro Devices Inc (NASDAQ:AMD) scored a price-target hike from Piper Sandler to $140 from $125 earlier, and was last seen leading the S&P 500 Index (SPX).